The Bahrain Bourse is the kingdom’s securities exchange, originally established as the Bahrain Stock Exchange in 1987 and rebranded in 2010. The exchange provides a regulated marketplace for trading equities, bonds, sukuk, mutual funds, and other securities listed by Bahraini and regional companies.
Market Scale
The Bahrain Bourse is a small exchange by global and regional standards, with total market capitalisation of approximately $30 billion. This reflects Bahrain’s relatively compact corporate sector. The exchange is significantly smaller than the ADX in Abu Dhabi, the Dubai Financial Market, or the Saudi Tadawul.
Major Listings
The exchange’s listed companies are concentrated in the banking and financial services sector, which accounts for the majority of market capitalisation. Key listings include Ahli United Bank (now part of Kuwait Finance House), National Bank of Bahrain, Bahrain Islamic Bank, and several insurance companies. Aluminium Bahrain (Alba) represents the most significant industrial listing. Other listed companies span real estate, services, and hospitality sectors.
Regulatory Framework
The Bahrain Bourse operates under the regulatory oversight of the Central Bank of Bahrain (CBB), which regulates all financial market activity in the kingdom. The CBB sets listing requirements, disclosure standards, and market conduct rules. The integrated regulatory model means that the exchange, its listed companies, and market participants all fall under a single supervisory authority.
Sukuk Market
Bahrain has developed a notable sovereign and corporate sukuk market, with issuances traded on the Bahrain Bourse. The government regularly issues sukuk to finance fiscal deficits, and Bahrain’s position as a centre for Islamic finance supports both primary issuance and secondary market trading of these instruments.
Reforms
The Bahrain Bourse has pursued modernisation initiatives including electronic trading systems, improved settlement infrastructure, and the introduction of ETFs and real estate investment trusts. The exchange has also worked to attract dual listings and cross-border investment.
Role in Vision 2030
The Bahrain Bourse supports the Bahrain Economic Vision 2030’s financial services development objectives. A functioning capital market enables companies to raise equity and debt capital, provides investment opportunities for Bahraini citizens, and contributes to the transparency and governance standards expected of an internationally competitive financial centre.